What is cut-off price in IPO?

In an IPO, the cut-off price is the final price per share determined during the book-building process, at which the company allots shares to successful bidders, typically the highest price where total demand meets the available shares, allowing investors to apply without setting a specific price. By selecting the cut-off price option, retail investors agree to buy shares at whatever final price is set within the announced price band, increasing their chances of allotment.